Press Kit 2025
Table of Contents
Turning Risk Into Wealth................................................... 1
How a Captive Insurance Company Works............... 2
Why Captive Insurance is More Critical Than Ever.................................................. 3-4
Fact Sheet............................................................................... 5-6
Industries We Serve.............................................................. 7
David vs Goliath: The CIC Services Supreme Court Victory Over the IRS............................ 8
Company Accolades.............................................................. 9
CIC Services Experts - Available for Interviews . .............................................. 10-11
Story Angles..................................................................... 12-16
Media Contacts...................................................................... 17
Turning Risk Into Wealth
CIC Services, LLC is a national risk management consulting firm, specializing in the utilization of captive insurance companies (CICs) to help organizations achieve their overall enterprise risk management goals. We have been helping business owners manage risk through CIC ownership since 2005 by providing superior expertise, and full-service, turn-key captive management services. Our principals have more than a century of combined experience in the insurance industry.
We understand the unique needs, goals, and fears of business owners.
We have built our business by serving these entrepreneurs through the innovative use of captive insurance companies tailored to meet their individual needs and to help them achieve their goals and dreams.
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How Captive Insurance Works:
Turn Risk Management Into a Profit Center These are often insurance companies and banks. It’s obvious they make signi cant pro t. When your company insures itself through its own insurance company, referred to as captive insurance, you get to keep the pro t and accumulate loss revenues for the future. A captive can help lower your net insurance premium spend. Here’s how. How a Captive Insurance Company Works
Captive insurance companies typically provide combined insurance and tax savings of 15-50% .
There’s a reason why 90% of Fortune 1000 companies utilize captive insurance.
No matter what industry you’re in, you likely pay for insurance.
Anatomy of a Captive
Insurance Captive insurance is often less expensive than commercial insurance. Captives are licensed insurance companies and have access to reinsurance markets (wholesale).
Recieve $5 Million (Insurance premiums)
And, you own the insurance company, so the premiums are paid to you—you keep the pro t after claims are paid out.
For example, if your insurance company receives $1 million in premiums, pays $100,000 in operations , pays $500k in claims and pays $200,000 for reinsurance and fronting then you have $200,000 in pro t. Taxes All or a portion of premiums are tax-deferred as loss reserves. In the above example, potentially $1 million tax-deferred * can be invested. Investment Income Invest large, tax deferred part of funds. As an example, after one year, at 5% interest, you’ve earned $50,000. Insurance Reserves Using the same example, the insurance company has $1,050,000 at the end of year one. In short, a captive does the following:
Pay $500k (Operations)
Pay $2.5 million (Claims)
Pay $1 million (Reinsurance & fronting) Profit $1 Million
Insurance
Taxes
$1 million tax-deferred* to invest
Investment Income
$50,000
Avoids sharing risk with “bad actors” Reduces or helps control insurance costs Creates investable surplus
Improves company’s bottom line Creates profit center Helps stop or limit insurance rate increases
Insurance Reserves
$1,050,000
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Why Captive Insurance is More Critical Than Ever
Captive ownership continues to rise. According to Aon’s 2023 Global Risk Management Survey, 25% of respondents currently use a captive, up from 17% in 2021, with an additional 6% planning to establish one in the next three years. At CIC Services, we’ve experienced this growth firsthand as clients increasingly turn to this risk management tool to manage risks in ever-complex and evolving market conditions. The past few years have underscored that the unexpected can and will happen—whether it’s a natural disaster, a supply chain disruption, or other unforeseen events that impact businesses worldwide. For example: • Natural Disasters and Power Outages: In late September 2024, Hurricane Helene, a Category 4 storm, struck the southeastern U.S., causing nearly 4 million power outages and significant damage. Such widespread impacts demonstrate the growing need for businesses to manage risks associated with extreme weather events effectively. (Campus Safety Magazine) • Supply Chain Disruptions: In 2024, global supply chains faced significant challenges, including disruptions at critical trade corridors like the Panama and Suez Canals. These disruptions highlighted the fragility of global trade and emphasized the importance of contingency planning for businesses reliant on international logistics. (The WallStreet Journal)
These incidents are difficult to predict and insure against, making captive insurance, with its ability to write broad coverage and fill gaps, a valuable tool.
When developing a robust risk management strategy, there are several reasons why business-minded audiences should know more about captive insurance: • Manufacturing Industry Outlook: Deloitte’s 2025 Manufacturing Industry Outlook highlights ongoing risks such as labor shortages and supply chain instability as leaders fend off disruption. (Deloitte) • Natural Disasters and Weather Events: Recent years have been among the costliest for natural disasters, and most scientists agree we’ll see more in the coming years. Captives can provide tailored coverage for such events, offering businesses a customized risk management solution.
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Why Captive Insurance is More Critical Than Ever
• Technological Advancements: While innovation has accelerated technology, it introduces new risks. The adoption of artificial intelligence and robotics opens businesses to potential product liability claims and manufacturing defects. Captives can offer coverage for these emerging risks, providing a safety net for technological-related liabilities. • Cybersecurity Threats: Cyber-attacks have been on the rise, with significant increases in recent years. Captives have become a profitable line of coverage for cyber risks, offering businesses a way to manage exposures such as ransomware, phishing, data breaches, or credential theft. • Health Insurance Premiums on the Rise: According to Swiss Re’s 2025 Global Economic and Insurance Market Outlook, health insurance premiums are projected to grow by 4.2% annually, driven by increased claims activity and inflationary pressure. For employers offering employer-based health care, premiums are expected to rise by 7% in 2025, based on an annual report from PricewaterhouseCoopers. This trend highlights the importance of leveraging captives to control rising costs and ensure sustainable coverage. The past few years have been tumultuous for the marketplace, and 2025 is shaping up to be no different. As inflation persists, consumer confidence is expected to fluctuate. With businesses now understanding the potential for unpredictable events that are widespread and severe, risk management is all the more critical. For businesses with captive insurance companies, or those considering it, keeping an eye on industry trends can help define how captives are best utilized—not only to mitigate risk but to control costs and ultimately boost profit.
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Fact Sheet
Captive insurance enables businesses to take more control over their risk management by owning their own insurance company. It is a cost-effective form of self insurance. Captives are real insurance companies and businesses can utilize them to replace some or all of their commercial insurance, insure enterprise risks, provide warranties and issue bonds.
What are the benefits of a captive insurance company? Improve risk management
Reduce net insurance premiums Reap gains in insurance profits Smooth rate increases Accumulate wealth Enjoy potential advantageous tax treatment Gain access to reinsurance markets Insure non-standard risks Employ customized insurance programs
How do captive insurance companies reduce costs and improve risk management?
Captive insurance eliminates a large protion of the administrative costs companies often pay through commercial insurance. Captives also generate investment income from unearned premiums and loss reserves. They also enable a
Can you form your own captive insurance company?
The rst step is to enlist an experienced captive manager that can guide you through the assessment and captive formation process.
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The CIC difference
Why choose CIC Services for captive insurance management? CIC Services, LLC (CICS) is a boutique risk management consulting rm, specializing in assisting successful organizations form and operate their own captive insurance companies, empowering organizations to achieve their overall enterprise risk management goals. CICS offers superior expertise and full-service, turn-key insurance management services. CICS’s principals have over a century of combined
CICS ensures that the captives it manages are on sound footing and in good standing throughout the entirety of their lifetimes. Captive insurance companies operate at the intersection of asset management, regulatory compliance and tax law, and CICS possesses particular expertise in managing this mix while providing clients with superior customer service and peace of mind throughout the process.
experience in the insurance industry and have completed the formation of 100+ insurance companies. CICS takes the unique complexities of insurance companies and simpli es them for the needs of clients. By “lifting the veil” on the insurance industry, CICS enables clients to participate in revenue and pro t in a manner that has been previously exclusive to the Fortune 500.
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Industries We Serve
CONSTRUCTION MANUFACTURING
HEALTHCARE
TRANSPORTATION/ LOGISTICS
IT/COMMUNICATIONS
RETAIL
WHOLESALERS
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David vs Goliath: The CIC Services Supreme Court Victory Over the IRS
In a David vs. Goliath win, the Supreme Court of the United States granted CIC Services LLC a significant victory for taxpayers and their advisors. In a unanimous opinion written by Justice Kagan, CIC Services, LLC v. Internal Revenue Service et al, the Supreme Court held that certain taxpayers and their advisors may sue the IRS to set aside or invalidate illegally issued IRS regulations and notices, at least when the legality of the regulation or notice, rather than taxes, is the only issue in dispute. The case involved a notice issued by the IRS in November 2016 requiring all every taxpayer and their material advisors who engaged in certain captive insurance transactions to make certain informational disclosures to the IRS and maintain certain additional books and records concerning the transactions. Noncompliance could result in onerous fines and imprisonment up to one year. CIC Services LLC contended that the notice was issued illegally, pointing out among other things that the agency issued the notice without first allowing for public comments as required by the Administrative Procedure Act (APA). The IRS contended that it was immune from the lawsuit due to the Anti-Injunction Act (AIA), a Civil War era law that requires taxpayers to first pay any disputed tax before suing the IRS. In a unanimous opinion authored by Justice Elena Kagan, the Supreme Court held that such lawsuits against the IRS can proceed despite the provisions of the AIA when the lawsuit isn’t a dispute over taxes but instead merely contests the legality of the IRS’s rule making. “For too long the IRS has behaved as if it was exempt from the basic rules of lawmaking that govern federal administrative agencies, as if the AIA gave it carte blanche to make and enforce laws by fiat without following due process,” said Sean King, General Counsel for CIC Services. “Our 9-0 victory proved them wrong.” After the ruling by the Supreme Court, the case was remanded back to Federal District Court. That court has since issued an injunction forbidding the IRS from enforcing Notice 2016-66 against CIC Services pending ultimate resolution of its case. The court noted that the injunction against the IRS was justified in part because CIC Services is suffering irreparable harm by virtue of the Notice and is likely to win its case on the merits. A decision on the merits is expected any day. In the meantime CIC Services expects other material advisors, and perhaps even taxpayers, to petition other courts for similar relief from the notice.
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Company Accolades
1. ICCE Trained Organization
2. Member of the Captive Insurance Companies Association
3. Risk and Insurance Management Society (RIMS) member
4. Self-Insurance Institute of America (SIIA) member
5. Approved continuing professional education (CPE) provider for CPAs by NCCIA
6. 2021, 2023, and 2024 Captive Manager of the Year Winner - US Captive Review
7. Serving businesses for over 16 years
8. Has enabled over 125 business to form captive insurance companies
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CIC Services Experts - Available for Interviews
Christopher Gallo, Managing Partner Christopher Gallo spent his career in risk management as a regulator with the Connecticut Insurance Department. He has taken the lessons learned from over three decades to apply them to improving risk mitigating strategies for businesses. Chris graduated from Central Connecticut State University with a Bachelor of Science degree in Administrative Science and obtained his Certified Financial Designation from the Society of Financial Examiners. After retiring from his regulatory career, he joined CIC Services in 2020, and consults directly with business owners, CEOs and CFOs in the formation, and as regulatory liaison, of captive insurance programs for their respective businesses. CIC Services, LLC manages over 100 captives.
Noah Miller Risk Management Consultant
Noah is a Risk Management Consultant with CIC Services, where he helps successful business owners create their own captive insurance companies to protect their business. During Noah’s tenure with CIC Services, he earned his Associates in Captive Insurance (ACI) designation from the International Center for Captive Insurance Education (ICCIE). Noah has also co-authored a book pertaining to captive insurance: ‘Fortune Favors the Insured; The Definitive Guide to Captive Insurance for Middle Market Companies. Prior to CIC Services, Noah worked as a Medicare and Life Insurance Agent. Noah holds Life and Health insurance licenses in the state of Iowa. Noah received a Bachelor of Science Degree in Business Management and Marketing graduating Magna Cum Laude from Taylor University in 2020.
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Sean King, JD, CPA, MACC, Founding Pricipal, In House Council
Sean King is a principal and one of the founders of CIC Services, where he serves as in-house Counsel. With a background in accounting, law, taxation and insurance, King is uniquely qualified to work in the captive insurance industry. He co-founded CIC Services in 2005 and specializes in creatively structuring captives to assist clients in achieving their risk management, asset protection, and wealth accumulation. In 2015, King served on the Captive Insurance Companies Association (CICA) committee that developed CICA’s formal Information Statement On Small Captive Insurance Companies. He has also been a panel speaker on captive insurance companies with CICA and at continuing professional education conferences of the Estate and Trust Section of the American Bar Association.
Sean received his Bachelor of Science degree in Business Administration, Cum Laude, from the University of Tennessee (UT). He also earned his master’s degree in accounting with a concentration in Taxation, as well as his Doctor of Jurisprudence (law) degree from UT. Sean holds active licenses as a CPA and attorney.
Randy Sadler, CMO Randy Sadler started his career in risk management as an officer in the U.S. Army, where he was responsible for the training and safety of hundreds of soldiers and over 150 wheeled and tracked vehicles. He graduated from the U.S. Military Academy at West Point with a Bachelor of Science degree in International and Strategic History with a focus on U.S. – Chinese Relations in the 20th century. He has been a Principal with CIC Services, LLC for 7 years and consults directly with business owners, CEOs and CFOs in the formation of captive insurance programs for their respective businesses. CIC Services, LLC manages over 100 captives.
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Suggested Story Angles
Healthcare Cost Uncertainty in 2025: How Captive Insurance Empowers Employers Amid Policy Shifts
The political landscape in 2025 brings new uncertainties for healthcare costs, as proposed rollbacks to the Affordable Care Act (ACA) and shifting regulations leave employers grappling with unpredictability. Rising premiums, changing coverage mandates, and employee dissatisfaction with reduced benefits pose significant risks to businesses’ bottom lines and workforce retention. Captive insurance enables employers to regain control by providing customizable solutions to stabilize healthcare costs. By pooling resources, managing claims more efficiently, and designing plans tailored to employee needs, captives empower organizations to navigate a tumultuous regulatory environment while preserving competitive benefit offerings.
Managing Supply Chain Risks in a Geopolitically Volatile 2025: How Captives Can Secure Stability
Trade tensions and geopolitical instability are reshaping the global supply chain landscape in 2025. Ongoing tariffs, export restrictions, and shifting trade routes disrupt sourcing strategies and inflate costs for businesses worldwide. Adding to the uncertainty, climate-related events increasingly threaten supply chain continuity. Captive insurance provides a lifeline, offering bespoke coverage for financial losses stemming from supply chain disruptions. By leveraging captives, businesses can mitigate risks from unexpected delays, unplanned costs, and reputational damage, ensuring operational resilience and financial stability in an increasingly fragmented global market. Tech Sector Resilience: How Captives Mitigate Risks Amid Deregulation and Trade Uncertainty The tech sector in 2025 is navigating a dual-edged political environment marked by deregulation and escalating global trade disputes. While deregulation offers opportunities for innovation and expansion, trade tensions—especially with China—threaten supply chains, increase tariffs, and drive up component costs. In such an unpredictable climate, captives provide tailored risk solutions, offering protection against supply chain interruptions, cyber threats, and fluctuating market conditions. For tech companies reliant on global partners, captives ensure stability, enabling them to invest confidently in innovation and safeguard profitability.
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Suggested Story Angles
Navigating Business Risks in a World on the Brink: How Captives Can Prepare Companies for 2025’s Geopolitical Instability
As 2025 ushers in heightened global tensions—with regional wars, strained Western alliances, and deepening autocratic ties—the fallout for businesses is severe. Operational disruptions, cyberattacks targeting critical infrastructure, and volatile commodity prices amplify risks for companies operating in or reliant on conflict-prone regions. Captive insurance provides an adaptable framework for managing these multi-faceted risks, offering businesses coverage tailored to conflict-specific challenges, such as property loss, business interruption, or reputational harm. In an era of unprecedented uncertainty, captives equip businesses with the tools to navigate geopolitical instability and emerge resilient.
The Domino Effect: Why One Risk Can Trigger a Chain Reaction for Your Business
In today’s interconnected world, no risk exists in isolation. A supply chain disruption can lead to production delays, customer dissatisfaction, and lasting reputational damage, compounding the initial loss. Similarly, data breaches not only impact operations but erode customer trust and brand equity. This domino effect underscores the importance of a robust risk management strategy. Captive insurance enables businesses to address interconnected risks holistically, providing coverage that spans multiple vulnerabilities and safeguards long-term stability.
Regain Control of Your Healthcare Benefits: I s a Healthcare Captive Right for You?
Healthcare costs are among the most significant—and least controllable—expenses for many companies. Traditional insurance often leaves employers at the mercy of annual premium hikes, impacting budgets and retention efforts. Captive insurance, particularly self-insured retention (SIR) captives, offers a scalable solution for businesses of all sizes, including those with as few as 50 employees. By self-funding healthcare, companies can customize benefits, control costs, and align their offerings with employee needs. For businesses seeking flexibility in a volatile environment, healthcare captives are an increasingly viable path to sustainable benefits management.
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Suggested Story Angles
Risk Management in a Subscription Economy: Why It’s Not as Simple as It Seems
The rise of subscription-based business models has transformed industries from software to retail, but it comes with unique risks. Customer churn, data breaches, and the challenge of maintaining predictable revenue streams are just a few obstacles companies face in this new paradigm. Captive insurance offers innovative coverage for subscription-specific risks, such as customer data liabilities and revenue interruptions. By integrating captives into their risk management frameworks, businesses can protect against these challenges while ensuring consistent growth in the evolving subscription economy.
Risk Beyond the Balance Sheet: Protecting Your Business’s Intangibles
In an economy increasingly driven by intellectual property, brand equity, and customer trust, intangible assets have become some of the most valuable—and vulnerable—elements of a business. Yet, traditional insurance often overlooks these risks. Captive insurance bridges this gap, offering customized solutions to protect against IP theft, reputational harm, and data breaches. For businesses looking to secure their competitive edge, captives provide a proactive approach to safeguarding what matters most.
Resilience Over Risk: Lessons from Businesses That Thrived Under Pressure
From navigating supply chain crises to weathering economic downturns, some businesses have emerged stronger after facing adversity. Their secret? Strategic risk planning, including the use of captives. By creating tailored coverage for unique vulnerabilities—whether natural disasters, cybersecurity threats, or regulatory changes—these organizations turned risks into opportunities for growth. This article explores real-world examples of businesses that leveraged captives to maintain resilience, offering actionable insights for companies looking to thrive under pressure.
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Media Contacts
Randy Sadler, Principal 865-248-3044 • c 865-599-6104 randy@cicservicesllc.com
Sarah Merrell, Fletcher Marketing Communications 865-394-8896 • c 828-231-3963 smerrell@fletchercomms.com
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www.cicservicesllc.com 865-248-3044 9721 Cogdill Dr. • Suite 202 Knoxville, TN 37931
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